Central Coast Real Estate

Coldwell Banker 10 Day Sales Event is On!

2008-10-15T15:14:00.000-07:00

Coldwell Banker Real Estate LLC is promoting a sales event during which participating sellers who have listed their homes for sale through a company agent will drop their asking price by up to 10 percent.

Borrowing a page from the marketing plans of home builders and auto dealers, the "10-Day Sales Event" will run from Oct. 10 through Oct. 19.

"Our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers," said Jim Gillespie, Coldwell Banker president and CEO, in a statement.

"It's our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative -- which has never been done before on a national basis -- because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction."

The announcement referenced a company survey of 3,379 Coldwell Banker real estate professionals -- 56 percent of respondents said that the listing prices in their market areas "remain above where they need to be to attract qualified buyers."

article from www.inman.com

Government Bailout of Fannie Mae and Freddie Mac

2008-09-11T10:46:00.000-07:00

Here is a link to a report from the Wall St. Journal about how the US Gov't has come to the rescue of Fannie and Freddie.

http://blogs.wsj.com/developments/2008/09/08/government-bails-out-fannie-mae-and-freddie-mac/

This is good news for home buyers and sellers. Upon this announcement mortgage rates dropped approximately one-half of a percentage point. The effect of this drop in rates will most likely be increased activity and sales resulting in a reduction of housing inventory.

Important Buyer Information

2008-08-11T10:46:00.000-07:00

Here are two short articles from http://www.realtrends.com/ email newsletter that I thought buyers would find useful:

Top economists say housing doom is overblown

(WASHINGTON) – The Washington Post reports that a team of housing economists
believe "predictions of further large housing price declines are greatly
overblown." The Post gathered some of the nation's top
economists to study the housing crisis. They concluded that in reality only four
states – Arizona, California, Florida and Nevada – have had home price declines
of more than 4 percent in the past year. The economists
said the home price index compiled by the Office of Federal Housing Enterprise
Oversight was the most comprehensive of the various
indexes. The Post said, "Our analysis reveals,
unsurprisingly, that foreclosures and home prices have negative effects on each
other over time, but this does not imply a vicious cycle of collapsing prices.
Our models predict that as foreclosures continue to climb in many states, house
prices will remain flat or decline in those states — but will not
collapse.

When to get the biggest discount in a home sale (SEATTLE) -
The online brokerage Redfin has released a study showing when buyers have the
highest opportunity to buy a home at the lowest price. According to Redfin,
heavily discounted homes are: -- 83 percent more likely to have been on the
market for 90-plus days. -- 73 percent more likely to be marketed as
fixer-uppers. -- 20 percent less likely to feature a substantial remodel. -- 28
percent more likely to have already been price-reduced. -- 52 percent more
likely to have been seller-owned for 20 years or more. -- 9 percent more likely
to be a short sale or bank-owned.

What's Going On with the Central Coast Real Estate Market?

2008-07-22T14:21:00.000-07:00

Along with the graphs that show the sales trends over the last few years, here is a brief synopsis of what's happening here on the Central Coast and in San Luis Obispo:

For Cayucos

There are currently 61 listings including single family, condos and PUD's. Least expensive is a 648 sq. ft. house for $359,000 and the most expensive is a 697 acre ranch for $6.6 million. The median price is $875,000. There are currently 4 homes in escrow and 22 have sold over the past 6 months with a median selling price of $860,000. The average days on the market is 104.

For Morro Bay

There are currently 131 listings starting at $299,000 for a small condo and going up to $3.7 million for a home on 116 acres. The median price is $649,000. 12 homes are in escrow at this time and 60 have sold in the past 6 months with a median selling price of $522,500. The average days on the market is 119.

For Los Osos

There are currently 73 homes on the market starting at $185,000 for a small condo and going up to $2.7 million for a view home over 5500 sq. ft. Median price is $579,000. 16 homes are in escrow and 55 have sold in the past 6 months with a median selling price of $470,000. The average days on the market is 121.

For San Luis Obispo

There are 230 active listings starting at $282,400 for a small condo and going up to $12 million for a ranch house and 7 rentals on 530 acres of land. Median list price is $624,500. 37 homes are in escrow and 172 have sold in the past 6 months with a median selling price of $571,950. The average days on the market is 86.

More Attractive Rates May Help Buyers

2008-06-24T10:49:00.000-07:00

Here is an interesting article from the Wall Street Journal regarding lower interest rates for “jumbo conforming” loans.

http://blogs.wsj.com/developments/2008/06/19/more-attractive-interest-rates-may-help-first-time-buyers/

It seems that these rate changes would really provide a boost to the real estate industry if the deadline to apply for these rates is extended past December 31, 2008.

Current Market Statistics

2008-05-20T12:32:00.000-07:00

Here is some statiscal information on the current real estate market for Cayucos and Morro Bay as of today 5/20/08:

Cayucos

59 - active listings
7 - pending sale
18 - sold in the past 6 months
Average list price - $1,319,207
Average selling price - $1,276,611
Average days on the market - 164

Morro Bay

119 active listings
15 - pending sale
47 - sold in the past 6 months
Average list price -$765,605
Average selling price - $571,726
Avereage days on the market - 132

As always, please feel free to call me at 805-471-5568 with any questions.

Seven Simple Reasons to Buy Now

2008-04-29T16:04:00.000-07:00

Here are seven simple reasons why this is the best time to buy a home in years.....

Fact #1: Some six million Americans are expected to buy a home this year. Six million people in the game make up a pretty big game. That's a level of sales equal to the one we experienced in 1998 by all accounts, a pretty good year.

Fact #2: There is still over $23 trillion of value in U.S. housing stock. Home ownership continues to be the basis of our wealth in this country.

Fact #3: The housing market cannot help but grow. Our country's tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.

Fact #4: Real estate is cyclical. The biggest fear in good times is that the fair weather won't last forever because it doesn't. But the reality of a cyclical real estate market also provides its brightest hope in bad times..foul weather won't last forever either. What's happening today is a market correction, severe in some places, but it's not the end of the world. As shown by Fact #1, people are still buying and selling homes. The markets will stabilize.

Fact #5: 2008 is the best year to buy a home in 35 years. 1973 was the last time mortgage rates were this low in a buyer's market. We had rates this low in 2001 and 2002, but those were strong seller's markets with little inventory. The last two big buyer's markets, in the early '80s and early '90s had much higher rates. Low rates and good inventory make 2008 the best year to buy in decades!

Fact #6: First-time buyers have a real advantage in today's market. First-time buyers can buy at a reduced price without having to sell at one too. Higher limits on lower cost conforming loans also help first-time buyers purchase more home for their money. Today's starter‚ homes can be pretty impressive.

Fact #7: First-time buyers lose money while they wait on the sidelines. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction. Renters are also losing the wealth they could be accumulating as they pay down their mortgage and as their home increases in value over time (as it surely will). Lastly, renters who wait to buy will lose money if interest rates increase by the time they finally act. Higher payments from higher interest rates represent money buyers could have kept if they had bought earlier. Conversely, if they were willing to spend that amount of money earlier, they could have bought more homes.

The above information was brought to you by Centex Homes.

Scenic Coast Home Sales

2008-04-18T11:38:00.000-07:00

Here's another update on the real estate market for Cambria, Cayucos, Morro Bay and Los Osos. I hope it's helpful to see a timeline of sales and what's happening so far this year compared to the last four. If you'd like to know how sales have been going in a specific area of the county or would like to be updated on new listings, please feel free to call me at 805-471-5568.

Zillow Appreciation Values

2008-04-01T11:26:00.000-07:00

I found an interesting article from www.realtrends.com with some home value statistics that were compiled by Zillow. As you will see, our market here on the Central Coast would be mostly the upper middle to top categories of price. In looking at the 5 year index, appreciation isn't as bad as it seems. That's the benefit of looking at the "Big Picture" and not just what's happened recently.

According to Zillow, a home's value may affect net gain or loss

While declining values and compressed equity have plagued many U.S. homeowners in recent years, the value of a home relative to others locally may very well
influence how much equity a home lost or gained last year, according to new
analysis by real estate Web site Zillow.com of its Q4 Home Value Report. Zillow
has broken down the U.S. housing market and 125 Metropolitan Statistical Areas
(MSAs) into five value bands - Bottom, Lower Middle, Middle, Upper Middle and
Top - each representing 20 percent of the market, to illustrate how homes of
varying value performed in 2007 and over the last five years.

Value Band Definitions and Change in Value

National / Zindex=$224,890 /1 year change = -3.0%/5-year annualized = 6.9%
Bottom /< $140,999 / 1 year change = -0.7% / 5 year annualized = 10.1% Lower Middle /$141,000 - $211,999 / 1 year change = -5.4% / 5 year annualized = 8.4% Middle / $212,000 - $300,499 / 1 year change = -6.2% / 5 year annualized = 7.3% Upper Middle /$300,500 - $460,499/ 1 year change = -6.5% / 5 year annualized = 6.6% Top / > $460,500 / 1 year change = -7.5% / 5 year annualized = 5.4%

Our Market's About to Change

2008-03-17T10:36:00.000-07:00

More buyers are out and about in our area! Our companywide Open House Extravaganza this past weekend was a great success. There are lots of deals to be had, and I believe potential buyers are realizing it. The new conforming loan limits should increase the amount of buyers in this market and have an impact on lowering the inventory, especially because these new limits will only be offered until the end of the year. I understand that these loans should be available starting in April as lenders are trying to figure out the specific requirements for approval. Buyers should be aware that because of all the recent foreclosures, the new loan conditions will be tougher than those in the past. This is a good thing, for both banks and borrowers, however. If the rules were tighter in the past we may not be in this mortgage mess now. I believe that all things happen for a reason, and hopefully we as a society will learn from our mistakes. Even so, the real estate market is a cycle and if you plan to invest, everything is pointing to doing it now. The real question is... will this new plan along with lower interest rates be enough to increase activity in the real estate market and help spur the economy? I am very optimistic about it.

New Loan Limits Released

2008-03-06T16:25:00.000-08:00

Here's another update to the increase of loan limits...

According to one local contact, Erica Spellacy with Pacific Capital Mortgage, ericaspellacy@hotmail.com,...

No lenders have acknowledged these increases. FHA may allow it but the lenders have to have the recourses to approve, fund and sell these larger loans before they can move forward.

But here's the good news...

FHA requires only 3% down, allows for more lenient underwriting standards and NO longer requires a termite clearance.

Please read on:

From Inman News
HUD releases new California loan limits
By Matt Carter, Wednesday, March 5, 2008.
HUD released the new FHA loan limits for California today -- the rest of the country will get theirs tomorrow -- and median home price data that allows you to calculate the new conforming loan limit for Freddie Mac and Fannie Mae (it's 125 percent of the median home price, or $417,000, whichever is more, up to a maximum of $729,750).

All told, 14 California counties saw their loan limits for FHA, Fannie and Freddie bumped all the way up to the $729,750 cap. Most were in the San Francisco Bay Area or northern California (Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Cruz, Santa Clara) with five more in the L.A. area (Los Angeles, Orange, San Benito, Santa Barbara, and Ventura).

New California loan limits
County /Median price /FHA limit /Conforming loan limit
Alameda County $995,000 $729,750 $729,750
Alpine County $438,000 $547,500 $547,500
Amador County $355,000 $443,750 $443,750
Butte County $320,000 $400,000 $417,000
Calaveras County $370,000 $462,500 $462,500
Colusa County $318,000 $397,500 $417,000
Contra Costa County $995,000 $729,750 $729,750
Del Norte County $249,000 $311,250 $417,000
El Dorado County $464,000 $580,000 $580,000
Fresno County $305,000 $381,250 $417,000
Glenn County $230,000 $287,500 $417,000
Humboldt County $315,000 $393,750 $417,000
Imperial County $260,000 $325,000 $417,000
Inyo County $350,000 $437,500 $437,500
Kern County $295,000 $368,750 $417,000
Kings County $260,000 $325,000 $417,000
Lake County $321,000 $401,250 $417,000
Lassen County $200,000 $271,050 $417,000
Los Angeles County $710,000 $729,750 $729,750
Madera County $340,000 $425,000 $425,000
Marin County $995,000 $729,750 $729,750
Mariposa County $330,000 $412,500 $417,000
Mendocino County $410,000 $512,500 $512,500
Merced County $378,000 $472,500 $472,500
Modoc County $125,000 $271,050 $417,000
Mono County $370,000 $462,500 $462,500
Monterey County $599,000 $729,750 $729,750
Napa County $615,000 $729,750 $729,750
Nevada County $450,000 $562,500 $562,500
Orange County $710,000 $729,750 $729,750
Placer County $464,000 $580,000 $580,000
Plumas County $328,000 $410,000 $417,000
Riverside County $400,000 $500,000 $500,000
Sacramento County $464,000 $580,000 $580,000
San Benito County $790,000 $729,750 $729,750
San Bernardino County$400,000 $500,000 $500,000
San Diego County $558,000 $697,500 $697,500
San Francisco County $995,000 $729,750 $729,750
San Joaquin County $391,000 $488,750 $488,750
San Luis Obispo County$550,000$687,500 $687,500
San Mateo County $995,000 $729,750 $729,750
Santa Barbara County $615,000 $729,750 $729,750
Santa Clara County $790,000 $729,750 $729,750
Santa Cruz County $719,000 $729,750 $729,750
Shasta County $339,000 $423,750 $423,750
Sierra County $228,000 $285,000 $417,000
Siskiyou County $235,000 $293,750 $417,000
Solano County $446,000 $557,500 $557,500
Sonoma County $530,000 $662,500 $662,500
Stanislaus County$339,000 $423,750 $423,750
Sutter County $340,000 $425,000 $425,000
Tehama County $250,000 $312,500 $417,000
Trinity County $200,000 $271,050 $417,000
Tulare County $260,000 $325,000 $417,000
Tuolumne County $350,000 $437,500 $437,500
Ventura County $599,000 $729,750 $729,750
Yolo County $464,000 $580,000 $580,000
Yuba County $340,000 $425,000 $425,000

Source: Department of Housing and Urban Development

A Second Economic Stimulus Package????

2008-02-27T10:41:00.000-08:00

This is a really interesting article from RealTrends.com regarding the possibility of a home buyer tax credit to reduce sales inventory and help spur the economy.

Homebuyer tax credit a possible way to reduce inventory

The idea of a second economic stimulus package is getting attention in Washington these days, and this one could have a provision to help more homebuyers. One proposal is to include a tax credit for buyers - a move that could help reduce the large amount of housing inventory currently on the market. A similar plan was put in place to clear out inventory in the 1970s, according to the National Association of Home Builders.

Help for first-time buyers is particularly important, said Lawrence Yun, chief economist for the National Association of REALTORS. More first-time buyers create a chain reaction in the market, allowing more current homeowners to trade up into their next home, he said. A tax credit for first-time buyers could give them a boost in confidence, counteracting their worries of home-price drops to come, he said.

"People will realize that the worst in housing is coming to an end if they see bold measures," Yun said in a telephone interview.

Can legislation actually work to reduce inventory? It has before, according to the NAHB. The group said that in 1975 - another time when inventories were high - a $6,000 home-buyer credit brought in a substantial flock of buyers, enough for builders to get back to business. (MarketWatch)

This is Soooo True......

2008-02-15T14:52:00.001-08:00

Ever wonder what's really going on with our economy? Here's a humorous take on what the economists and analysts have to say....

A short concise view of where the economy is headed

After listening to economists and experts conjecture about the direction of the economy, a humorous summary is as follows:

What we have here is a continuing, but slowing, upward drive on the downside - which is better than a downward thrust on the upside, or even a sideways move on a U-shaped trough.

But, as the downside bottoms out, the resulting flat side of the up curve will strengthen any sideways movement still apparent in the recovery.

However, if the overshoot of incline produces a rising, but negative, slowdown in acceleration of the leading indicators, the resulting outflow could mean additional pressure from all sides of a circular demand curve.

taken from Realtrends.com

Update #2 on the Economic Stimulus Plan

2008-02-14T11:23:00.000-08:00

Here's an article from the California Association of Realtors (C.A.R.), Newsline, Febuary 13, 2008 regarding the Economic Stimulus Package:

PRESIDENT SIGNS $168 BILLION ECONOMIC STIMULUS BILL
President Bush today signed off on the $168 billion stimulus package approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limit. The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas for loans originated between July 1, 2007 and Dec. 31, 2008.

"The actions of Congress and our president represent a significant victory for homeowners across the state and nationwide," said C.A.R. President William E. Brown. "C.A.R. has long fought for increases to the conforming loan limit in order to close the gap for would-be home buyers in high-cost areas, such as California, and, with the spotlight now fully shining on this important issue, will continue those efforts and push for permanent changes beyond Dec. 31."

To read the president's remarks regarding the signing of this bill, go directly to http://www.whitehouse.gov/news/releases/2008/02/20080213-3.html.

Update on the Economic Stimulus Plan

2008-02-11T11:11:00.000-08:00

Here's a quick update on the Economic Stimulus Plan as it pertains to our housing market. Although the senate is still squabbling over the details, congressional insiders are expecting approval. The pending legislation will affect those areas with median home prices above $334,000 and the new limit for jumbo loans will be 25% higher than the median price up to $729,750. The chart shows median home prices for several metro areas including San Luis Obispo County and is taken from the Wall Street Journal, Thursday Feb. 7, 2008, Redefining Jumbo Loans.

Economic Stimulus Plan....Buyers get Ready

2008-02-06T12:26:00.000-08:00

Here's an article from the California Association of Realtors, published a couple of weeks ago, that may bring you up to speed on the economic stimulus package that is currently being reviewed by the senate. It has passed in congress and if it's approved by the senate, it will be another great reason for buyers to make their move and decide to purchase. I'll keep you updated on if/when it passes.

Increasing conforming loan limits part of stimulus package

The U.S. House of Representatives unanimously approved a measure Tuesday that includes an increase in the conforming loan limits as part of a larger economic stimulus package. The measure would allow the Federal Housing Administration and Fannie Mae and Freddie Mac to issue mortgages above the current $417,000 level. Raising the conforming loan limits to more accurately reflect the cost of housing in California and other high-costs areas of the nation has long been an objective of C.A.R.

“While this measure is expected to face an uphill battle in the Senate, Tuesday’s action by the House represents a huge win for Californians and for C.A.R., which has fought aggressively for the increases for several years,” said C.A.R. President William E. Brown.

“For years, Chairman Barney Frank and I have worked to create affordable housing opportunities for families across the country by increasing the FHA and GSE conforming loan limits,” said Congressman Gary G. Miller, who has worked closely with C.A.R. to push for the reforms. “With the average home price in high-cost areas like California exceeding the current loan limit, homeowners and homebuyers in these areas have been unable to utilize these important federal housing programs. The loan limit increases included in the economic stimulus package will make safe, conforming mortgage loans available for homebuyers in all areas of the country.”

Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly – and often riskier – loan products. Under terms of the proposed stimulus package, the conforming loan limit will be raised from $417,000 to as high as $729,750 in high-cost areas. The increases would only be valid through the end of the year.

While the House is hoping to send the measure to President Bush for signature by Feb. 15, the Senate is reported to be crafting a stimulus package of its own, including add-ons, which may result in delays. In addition, the Office of Federal Housing Enterprise Oversight (OFHEO) continues to oppose conforming loan limits reforms.

The House’s economic stimulus package also includes $500 million to support foreclosure mitigation counseling agencies across the country, many of which are currently short-staffed and overwhelmed by the rise in defaults.

Taken from www.car.org

It's About Time!

2008-01-23T12:32:00.000-08:00

Well, I figured since I haven't written in over a month, it's about time I update this blog. I apologize to any of my readers for the delay. Regarding my last post, I thought you may want to know that we sold our house. What a big relief for us, especially in this slower market. I can only imagine, (and feel empathy for) what many sellers across the country are going through right now, not to mention those who are losing their homes. Fortunately for us, the market in our area has not taken as bad a beating as the rest of the country. And, we found some wonderful buyers who were well qualified, love the house, and will be great neighbors. (The house we moved to is just around the corner.) Anyway, needless to say, with moving, the holidays and a short vacation, I've neglected this blog. I will try and keep posting more regularly, however. In the meantime, here is another great picture of how the real estate market progressed in 2007, and how many homes were sold this year, compared to the previous three years. The first graph is for the Scenic Coast: Cayucos, Morro Bay, and Los Osos, and the second graph represents all of San Luis Obispo County. As always, please feel free to contact me anytime with questions. I'd love to hear your comments as well. By the way, if you are thinking about buying, the feds just lowered interest rates again yesterday. It's about time those of you who are sitting on the fence, take advantage of these low rates and low prices!

My Life as a Seller

2007-12-05T12:19:00.000-08:00

I'm going through what I know to be one of the most stressful experiences we all go through in life, and I've recently figured out that I've made it even more difficult because I've chosen to wear two hats. I'm selling my house and representing myself in the transaction. Not that I don't believe in my own abilities as a professional real estate broker, but since I have not been a seller of a personal residence in at least 15 years or so, I forget about all of the emotion and personal feelings that lie hidden underneath the surface of everything. I work with people all the time going through the same thing and I am able to help them through it with care and understanding. Logically, I knew it was possible to feel the same way. I guess I just thought I could be professional and businesslike when it came to selling my own home and treat it like any other sale. Being a seller in general, especially in this market is difficult, no matter what. Things like having to keep your home in showing condition at all times because buyers seem to want to see it on short notice are especially tough to live through. And, the emotional highs and lows of negotiating offers, are painfully frustrating especially if they do not meet expectations. Well the good news is that by becoming aware of the experience it's easier to take a step back and work through it and I know we all go through them for a reason. I know this one is meant to help me become a stronger person and agent; someone who can relate to my clients in a way that will serve them even better.

Can You See The Rare Opportunity Here?

2007-11-16T11:11:00.000-08:00

Our office manager, Michael Byrd has compiled a great visual of median home prices over the past five years on the Scenic Coast, and I am certain he won't mind if I share it with you. Here is what has occurred in San Simeon, Cambria, Cayucos, Morro Bay and Los Osos. The median prices were as follows:
2002 = $379,000; 2003 = $435,000; 2004 = $536,000; 2005 = $619,500: 2006 = $625,000; 2007 = $587,500. In looking at these numbers, especially the large decline in median price for this year, it should be pointed out that even though it fell 6% (it's amazing to see that blue bar going negative for 2007), the median price has increased 55% over the past five years. A big "thank you" to Mike for reminding us all that it's good to look at the bigger picture. Again, if you plan to invest on the coast, consider this, the time to "buy low" may be here and now, and you can still feel confident that appreciation overall has remained strong.

"Word on The Street"

2007-11-03T15:33:00.000-07:00

I've been trying anything and everything to sell my listings over the past few months but it seems like there aren't many buyers out there and those that are ready, have a home to sell somewhere else. Since I entered the real estate industry, seven years ago, the market here has gone up exponentially, until now. This is the first year I have seen such a big change. We all knew it was coming...because an adjustment was necessary, but this big of an adjustment was not foreseen by most. And, of course many factors are playing into it, not to mention the lending meltdown. Word on the street, from a few of the the long time brokers in the area is that this market hasn't been around since 1993. Question is, is now the right time to invest? There are many more homes to choose from and many sellers out there ready to make a deal. More than I've seen in seven years! If I was a buyer, I may wait a little longer, but I sure wouldn't want this down cycle to pass me by.

On another note: Looks like the Cayucos Car Show is a success! There are tons of people in town today and the weather is sunny, warm and beautiful. It was a great day for my open house too....I did have a better than usual turnout...maybe there will be sales to be made, especially if the sun keeps shining and the ocean keeps sparkling like this!!!!

Market Visual

2007-10-17T12:36:00.000-07:00

In relation to my previous article, here's a graph showing how the market has changed over the past four years on the scenic coast. It's interesting to see what happened with sales in July of this year right after the upset in the mortgage industry. It's a good visual of how real estate changes from month to month and what it typically does during the different seasons of the year as well. I wish we had one predicting what the next four years will be like. It's going to be interesting!

The Current State of the Market

2007-10-09T11:38:00.000-07:00

Just before we reach the holiday season, I thought you may want to know what's been happening with the market in Cayucos, Morro Bay and Los Osos recently and over the past six months.

For Cayucos, there are currently 49 residential single family homes and condos for sale, 4 pending sale, and 26 have sold in the past 6 months. The average time it is taking for a home to sell in Cayucos is 139 days, or approximately 4.6 months. The average sale price to list price is 94%, so if a seller listed their home for $800,000 it most likely sold for about $752,000. The median sales price during the same time frame is $842,500.

For Morro Bay, there are currently 108 homes on the market, 9 pending sale or in escrow, and 55 have sold over the last 6 months. The average time on the market has been 121 days, or about 4 months. And the average list price to sale price is 95.8%. The median sales price is $570,000.

For Los Osos, there are currently 102 homes on the market, 11 pending sale, and 77 sold in the last 6 months. Average days on the market has been 119 days and average list price to sales price is 95.6%. The median sales price is $469,000.

Well, I hope that will give you some idea as to what's been going on recently with the numbers, and where people are buying right now. For sellers, it's helpful to see the time it's taking to sell a home and the actual sales amount compared to list price, which is similar in all three communities. The main differences are the amount of inventory and the median prices. It will also be interesting to see what happens with the market over the winter and in the next year or so.

Bill Tightens Tax Rules for Second Homes

2007-10-02T13:19:00.000-07:00

Here is an article taken from www.realtrends.com regarding new legislation just approved that could affect owners of vacation homes or investment property, which are quite prevalent in our community.

Popular legislation to ease the tax burden on struggling homeowners could hit an unexpected constituency: people with second homes. The Ways and Means Committee, the House's tax-writing panel, approved a bill last week under which homeowners facing foreclosure won't get stuck with a tax bill if part of their debt is forgiven by lenders. Currently, forgiven debt is treated as income to the borrower and is subject to tax.

The committee decided to pay for the tax break, as required by congressional budget rules, by restricting homeowners' ability to avoid or reduce the taxes on the sale of second homes. The gain in revenue would be equal to roughly $2 billion over 10 years.

Under current law, a person can exclude from taxes up to $250,000 in capital gains on the sale of a principal residence. Up to $500,000 of gains can be excluded for married couples. A second home can become a principal residence as long as the taxpayer has lived there for two of the previous five years. The bill approved yesterday would change those rules. Under it, the size of the tax break for a second home would be tied to the portion of time, out of all the years a house is owned, that it serves as a principal residence. Living in a property longer would result in a larger tax break on any gains when it is sold.

Los Osos - Big Risk or Good Investment?....You Decide

2007-09-05T10:45:00.000-07:00

Are you wondering why there are so many properties for sale in Los Osos? Even in this market there are over 120 listed in a town with a population of about 15,000 people. Well, maybe it's the sewer saga. Have you heard about it? People far and wide have heard about it...it's been national news. In a nutshell, here's the situation: most of the homes in Los Osos are on a septic system, the septic is affecting the ground water, the town needs a sewer, in fact they have needed one for years but it is now a dire situation, a project was started, there was controversy with the plant location, the board was recalled and the project was halted, the funding was lost, law suits erupted, causing property owners to be affected by increased costs and assessments. The good news for real estate investors looking for coastal property is that there are some good deals to be had right now. There's lots of inventory to choose from, causing competition among sellers. Many home owners are selling because the uncertainty of the assessment costs are a big concern, especially to those living on a fixed income. Vacant lots are for sale at a great price, if you're interested in future development, because they are unbuildable until sometime after the sewer is in. And, lot owners will not be assessed until they are allowed to build and become a part of the sewer system. Overall, the risks include potential continued delays in the sewer project which will further increase the costs to all property owners, but once all is said and done, coastal property, especially those with ocean views and a great "location, location location" may appreciate enough in value in the long run to offset these potential costs. So those of you looking at the bigger picture may see a good investment in Los Osos. You can learn more by clicking on the following links to the Los Osos CSD website and the California Waterboard website.

Is Now the Right Time to Buy, or Should I Wait?

2007-08-15T10:28:00.000-07:00

Why You Should Not Wait to Purchase a Home
Even if you could "time the market," that strategy would most benefit first-time buyers.

You see, people who already have a home usually need to sell it in order to come up with the down payment for their next home. Even if they don't, they would have to carry the debt and obligations on two homes at the same time. This can create financial hardship, even when you rent out the previous home. There are maintenance costs, renters don't always make their payments on time, the rent may not cover the mortgage and other costs, and sometimes the property may be vacant.

>So if you are a move-up buyer and want to purchase your next home during a depressed market, you generally have to sell your current home during that same depressed market. If you want to sell during a boom, then you also have to purchase during the same boom.

It tends to equal out.

Finally, suppose you are a first-time buyer and wait think the end of a boom is near? If you guess wrong, are you going to wait...and wait...and wait...till the next depressed market? If so, you could miss out on loads of depreciation...

...and that is assuming you guess right about your market timing. In 1996, when the home market was struggling, who would have predicted what the next seven years would bring?

article from www.realestateabc.com

GOING GREEN

2007-06-27T15:20:00.000-07:00

You can't call me Kermit yet, but I've recently decided to start trying to go green, well at least little by little. Here are some "Trends to Know" if you are interested in becoming greener or more environmentally friendly at home.

Copper roofs. Copper and copper alloys, such as brass and bronze, are showing up on roofs, entryways, facades, gutters, and downspouts. Despite being quite pricey to purchase and install, they’re seen as a good long-term investment because they tolerate inclement weather. “A copper roof that’s installed properly will last beyond 100 years versus a composition roof that may last only 30 years,” says Ken Geremia, manager of communications for the Copper Development Association in New York City. Copper elements also can be completely recycled, so you’ll never find them left on a site or plowed under a foundation, says Geremia.

Timber framing. Timber framing requires significantly less lumber than the traditional “stick-built” housing and almost always incorporates superior insulating panels (SIPS), which keeps heat and air conditioning from escaping the house. There’s less waste when large timbers are used, compared with conventional construction that produces sawdust and waste every time a 2-by-4 stud is planed, says Frank Baker, president of Insulspan and Riverbend Framing, part of PFB Corp. in Calgary, Canada. In addition, less energy is needed to power machines and kiln dry wood because timber framing uses freshly cut wood, he says. Timbers are prefabricated and arrive at the building site ready to be assembled, paring construction waste. Costs vary according to finishes selected, just as they do with stick-built housing.

Windows that beat the heat. Low-emittance (Low-E) windows, doors, and skylights offer natural light while blocking the sun’s UV rays that heat up the inside of a home, sometimes necessitating air conditioning. The special low-E glazing also stops the sun from fading fabrics, wall coverings, and artwork. When shopping for low-E windows, find out what percentage of rays are blocked by checking the UV label on the glass, advises Rod Clark, product marketing manager for Jeld-Wen Windows and Doors in Klamath Falls, Ore. Most low-E products block 70 percent to 90 percent. Next, examine the glass for clarity. “Most people want glass that’s clear rather than with a slight tint or color,” he says. Though some manufacturers may tout triple over double glazing, Clark says it’s usually more than you’ll need.

Rainwater holding tanks. Capturing rainwater and storm runoff helps reduce the burden on local sewer systems and captures water that can be used in other ways, such as for watering the yard or flushing toilets. In the National Homebuilder Mainstream GreenHome, a 4,000-square-foot demonstration home being completed in Raleigh, N.C., a rainwater cistern and detention tank system will show that 95 percent of stormwater on a site can be recycled, reused, and absorbed. The rainwater cistern will collect water from the roof and gutters, filter it multiple times, and direct it to indoor plumbing, the laundry, and the sprinkler system. Overflow from the cistern will be funneled into inexpensive detention tanks to be absorbed gradually back into the ground.

Chemical-free lighting. LED lighting (LED stands for light emitting diodes) is a semiconductor that emits light when an electric current is applied. One big advantage: It contains no hazardous chemicals like other lighting does. For instance, compact fluorescents contain mercury and incandescent bulbs have gasses that hurt the ozone layer. In addition, an LED fixture uses 80 percent less energy than a traditional incandescent light bulb and has the ability to last up to 20 years, says Ron Lusk, chairman, president, and CEO of the Dalllas-based Lighting Science Group Corp., the first company to market a high-output, dimmable, Edison-base white-LED light bulb. LED bulbs also provide quality crisp light that shows colors in a natural palette, Lusk says. The downside: the initial cost. A typical 40-watt LED light will run about $39 while an incandescent light will cost $4 to $5, Lusk says. He believes that prices will come down as more businesses and home owners switch, as power companies offer better consumer rebates, and if the government makes the purchase of these energy savers deductible.

Green toilets. Water-conserving toilets can boost your budget while also helping the environment. “Make smart choices in choosing products throughout your house, and you can save 30 percent to 50 percent on your annual water bill,” says Ori Sivan, co-owner of Greenmaker Supply Co. in Chicago, which sells environmentally sensitive building products and materials. New green toilets conserve water in different ways: low-flow toilets use about 20-percent less water per flush, dual-flush toilets with two buttons give home owners the option of flushing with a half or full tank, and pressure-assist toilets reduce water usage by half and yield a powerful whooshing sound, says Sivan. Toto’s Aquia dual-flush toilet with a soft-closing seat (pictured at right) costs $300, comparable with other quality toilets, Sivan says.

Solar orientation. Face a home or an addition in the right direction and build it with the right materials, and you’ll reduce the amount of heat and cold that enter from the outside. That’s what home owners Ross and Tami Bannister did with their new T-shaped farmhouse (pictured at right) in Grapevine, Texas. They wanted the look of a 19th-century structure, but the functions of a modern-day green structure. When completed this September, the 2,300-square-foot house will be a demonstration project for the U.S. Department of Energy’s Building America program. The Bannister’s farmhouse was built near the back of its lot in a north-south direction to take advantage of prevailing winds that come predominantly from the south. The home has deep porches on the east and west to shade the home from the harsh summer sun. Large pecan trees provide more sun protection. In addition, the roof is insulated with a new DuPont product called AtticWrap — a breathable membrane that creates an airtight seal to reduce air leakage. The house also has low-E windows.

Induction cooktops. Unlike traditional cooktops that heat up the cooking surface, the coils of an induction cooktop release their energy directly to the pot or pan and its contents. That means less energy is diffused in the cooking processes. It also means that the cooktop surface remains cool to the touch, making it less likely that cooks or kids will burn themselves, says Amir Girgis, managing director of Diva de Provence, a company that first produced induction cooktops for restaurants and has manufactured them for home chefs since 2002. The company’s 30-inch and 36-inch cooktops will be joined by a 36-inch induction range this fall. The technology still is more expensive than comparable quality electric and gas appliances, though home owners should see energy bills eventually drop. Cooks also must use pots and pans with a ferrous metal base, says Girgis.

Geothermal heating and cooling. Instead of using a traditional furnace that heats or cools air and emits carbon monoxide during the process, geothermal pumps are filled with water and glycol and rely on the earth as a heat exchanger. In winter, the system sends warm air into rooms; in summer, it brings cool air. Though the initial cost is twice as much as a traditional heating and cooling system, the payback comes five years down the road when you start reaping the benefits of much lower heating and cooling costs, says developer Ron Fleckman, president of Cyrus Homes in Evanston, Ill. His company is building 40 townhouses in Evanston’s Church Street Village development, which uses a geothermal system and other green elements. It is one of the first communities nationwide to test this type of construction. “Because the cost of natural gas is climbing, the payback will be quicker,” he says. Home owners can also retrofit an existing house with this system.

Attic heat blocker. TechShield roofing panels, produced by LP Building Products in Nashville, stop the domino effect of inefficient roofing material. Poorly insulated roofing lets radiant heat into the attic, which then spreads throughout a home and requires the owners to turn on the air conditioner. By contrast, TechShield blocks up to 97 percent of the radiant heat, reduces the attic temperature 30 degrees, and cuts energy consumption and carbon gases as a result. “You can cut monthly energy bills by as much as 20 percent,” says Rusty Carroll of LP Building Products. The panels are made of a thin layer of aluminum foil laminated to OSB (oriented strand board) roof sheathing, which is made from fast-growing trees, and installed in the attic of new construction. The panels are used in conjunction with insulation rather than as a substitute, Carroll says. He recommends them both for houses in the South and Sunbelt where rays are strongest. A 3,000-square-foot house might cost $1,000 to $1,500 to outfit with the panels.

Reclaimed wood countertops. Fast-growing plants like bamboo, and already-cut woods that aren’t being used, find new life as gorgeous countertops thanks to entrepreneurs like Ken Williamson, founder of Atlanta-based The Craft-Art Co. The wood he uses is readily available and comes in many variations of color and texture, from antique heart pine found in shuttered Southern mills and old dilapidated farmhouses, to red oak and Douglas fir just waiting to be recycled from the bottom of pickle vats. To keep the countertops looking their best, Williamson uses a clear, organic tongue-oil varnish.

Nontoxic paint. To keep indoor air clean and cut down on landfill pollutants, many consumers are using paints that don’t contain toxic Volatile Organic Components, or VOCs. These paints come in a variety of colors and finishes, and are offered by mainstream paint companies, from Sherwin Williams to Benjamin Moore. But for a more unique look, check out Italian-made Oikos paints, which come in 26 unusual finishes such as Venetian Stucco, Velvet, and Pearl.

Formaldehyde-free insulation. Building products such as insulation can emit traces of the chemicals they’re made with, which pollutes the air inside of homes. That’s why manufacturer Johns Manville in Denver made the decision in 2002 to remove formaldehyde from its building insulation and duct board. By removing the formaldehyde from its plant and manufacturing facility, the staff isn’t subject to it, and it also improves the environment around our plant so it helps neighbors, says Scott DeShetler, director of marketing and communications for the company.

Smart irrigation systems. WeatherTRAK controllers automatically adjust watering schedules based on the needs of your landscape and local weather conditions. The system’s “brain” receives satellite data with information about local weather conditions. An additional moisture sensor shuts down the system if it starts to rain when the sprinkler is on. Manufactured by HydroPoint Data Systems Inc. in Petaluma, Calif., the basic model starts at $500 and prices climb to $5,000, based on the number of sprinkler heads. Besides better looking lawns, home owners reap lower water bills and contribute to a healthier environment.

Green furniture. When old barns, factories, and farmhouses are torn down, their wood can be salvaged for artistic furniture. Eric Mann, owner of New England Country Custom Interiorsin Clinton, Mass., sells furniture made from materials that would most likely end up in a landfill. Mann also works “green,” using solar heat to power machinery to craft his early American furniture reproductions. He also finishes pieces with biodegradable milk paints rather than oil or latex choices. A farm table with a barn-board top measuring 5 feet by 8 feet runs between $500 and $1,500.

taken from: "Sustainability takes root, What’s New on the Green Scene" at Realtor Magazine online, www.realtor.org

Okay, maybe you can start smaller like changing out your light bulbs or conserving water. There are plenty of things you can do to start making a difference little by little, but think about what an impact you can make if you're planning to remodel, build or even furnish your home with some of these great ideas.

Morro Bay Cutie

2007-06-19T12:40:00.000-07:00

Anyone looking for a coastal home at a great price should take a look at this Morro Bay Cutie. It's neat, clean and freshly painted. A wonderful rental home and investment for the future, or use it as your own vacation spot; it's in a nice neighborhood, just a minute or two from the beach and easy access to shopping and restaurants. For more photos and additional information visit www.600avalon.com And, please feel free to contact me directly anytime!

The Scoop on Tighter Loan Standards

2007-06-01T10:56:00.000-07:00

I regret the amount of time that has passed since my last post. The good news is that real estate activity is increasing right now, so things have been busy. More homes are starting to sell and fewer new listings are coming on the market. A great recipe for a strong market this summer and fall! I'm sure you have heard the news regarding the fallout from some of the creative financing and low interest loans that were so popular recently. If not, here's the scoop...lenders who have offered creative packages to buyers in the past, such as low adjustable rate mortgages, 100% financing, stated income loans, interest only loans, etc. are experiencing more and more foreclosures recently due to the changing market, the economy, and other related factors. Here is an article that may help today's buyers understand the current loan standards...

Daily Real Estate News | May 29, 2007
Tighter Lending Rules Keep Some Buyers Out
Mortgage lenders are tightening standards in ways that can make it much more difficult for potential borrowers to get approval for loans.

The new standards fall into the following areas, according to Wells Fargo & Co. and other large lenders:

Ability to repay. Buyers are no longer being qualified at the low initial rate. They must qualify for the loan payments at rates equal to what the loan would be if it reset at a higher rate.
Down payment. Lenders want buyers to put some money down, even as little as 5 percent or 10 percent. Loans for 100 percent of the price are very hard to get.
Credit score. Credit scores range from the high 300s to the low 800s. Borrowers with a credit score above 680 are likely to qualify for a reasonable deal. Between 660 and 680, they may qualify, but the deal could be pricey. Potential borrowers with a score of 620 or less need to raise their scores before they can qualify.
Income and income verification. Producing proof that a borrower has a job is key; “stated income” loans are much more difficult to get. Also lenders are unlikely to approve a loan in which the home buyer will spend more than 45 percent of his gross income paying off debt, including paying the mortgage.

Source: The San Francisco Chronicle, Carolyn Said (05/26/07)

If you would like more information about the different types of loans available and getting pre-qualified, I have some great local lenders that I work with on a regular basis. I would be happy to refer you to a qualified professional so you can get started on the right foot!

"60 Minutes" Worth of Real Estate Marketing Advice

2007-05-16T13:31:00.000-07:00

Did anyone see the piece on CBS's 60 Minutes about buying and selling homes with discount internet brokers? Well just to let you know there has been a lot of resentment from the full-service brokerage industry, and from NAR, the National Association of Realtors, named in the piece. The following is an article taken from RealTrends.com, a real estate website providing information to industry professionals, which mentions some of the misinformation presented in the program:

"According to the National Association of REALTORS, CBS' show "60 Minutes" gave them "the empty chair treatment" in its May 13th segment that examined the impact of online brokerages on the real estate industry. The show featured interviews with a representative from the now-defunct eRealty and the president and CEO of Redfin, but no one from NAR, even though NAR twice offered and prepared association spokespersons for interviews with Leslie Stahl.

NAR is in communication with 60 Minutes and accuses the program of being unbalanced in its reporting and presentation of misinformation. NAR will be sending the CBS network a letter demanding an opportunity to correct any errors and misrepresentations.

Here are some examples of the misinformation that NAR notes:

Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not six percent, but 5.1 percent, according to REAL Trends.

Error: NAR is the industry's "governing body."
Fact: NAR is a trade association. It does not govern the industry.

Error: In 2003, NAR issued new rules of its own that threatened to block Internet discounters access to the MLS.
Fact: The Virtual Office Web site policy did not block access to MLSs for discounters or any other brokers who are members of the MLS.

Error: The MLS is the database that lists virtually every home for sale in the country.
Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases," but a private exchange of offers of cooperation and compensation between real estate brokers.

Error: Eight states have "minimum service laws" that require Realtors to provide a level of service many Internet discounters can't afford.
Fact: "Realtor" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

Error: The brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates.
Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

NAR expressed disappointment that CBS made the decision it would rather interview opponents and let them make "unanswered - and inaccurate and unfair - accusations" about Realtors and NAR policies. (REALTOR Magazine Online)"

I, for one, am all for technology and tools that will assist buyers and sellers in achieving their real estate goals. However, computer marketing, virtual tours, GPS, and instant messaging will never replace the hands on, face to face, personal attention, that a full service real estate professional can provide a buyer or seller that is making one of the biggest financial decisions in their life.

Spring Market Update

2007-05-10T11:10:00.000-07:00

Here's a brief summary of what's happening in the market right now.

For Morro Bay there are currently 69 single family homes listed for sale. The lowest was listed on May 2nd for $389,000 and is a 2 bedroom, 1 bath cottage with a peek of the ocean and approximately 676 sq.ft. The highest was listed on over a year ago for $3,000,000 is a 2 bedroom, 2 bath, 1450 sq. ft. fixer with views of the hills, but it sits on 20 acres of prime agricultural land. The average list price is $812,113 and the average recent sales price is $635,029. There are 17 homes in escrow right now and 51 homes have sold in the past six months. It is taking about 124 days for homes to sell in this market.

For Cayucos there are currently 48 single family homes actively for sale, 7 pending sale and 11 have sold in the past six months. The lowest was listed in April for $549,500 and is a 1 bedroom, 1 bath, remodeled 1950's cottage with ocean views and approximately 800 sq. ft. The highest was listed on May 1st for $4,950,000 and is a brand new 3 bedroom, 4 bath, 2450 sq.ft. oceanfront home. The average list price is $1,414,855 and the average recent sales price is $973,082. It is taking about 159 days for homes to sale in Cayucos.

What these statistics are telling us is that the market is looking good for the spring-summer season. Inventory is down a little bit and even though there have been several new listings, sales have been picking up with more buyers coming over to the area. And, average market time is decreasing which can be attributed to the fact that most sellers are finally being more realistic about how the market has changed and the importance of pricing their home right in this market so that it will sell. I am very optimistic that the market will be strong over the summer as more buyers make the decision to invest during this "favorable" period.

Coldwell Banker Open House Weekend and The Morro Bay Car Show

2007-05-03T10:19:00.000-07:00

This weekend there's lots going on if you're coming to town. First of all, you may want to check out all of the open houses in the area. Coldwell Banker Liberty along with Coldwell Banker Premier, and Coldwell Banker Don Bricker are coming together to showcase listings in Cambria, Cayucos, Morro Bay, San Luis Obispo, Avila Beach, Shell Beach, Grover Beach, Arroyo Grande, Nipomo and Santa Maria this weekend and and throughout May. Visit participating open houses this month and enter to win two Aerosmith tickets and admission to the Mid-State fair in Paso Robles on July 25th. (certain rules apply) And, by the way, if you didn't already know, the Aerosmith tickets sold out in the first few hours they became available. The sample flyer to the left is being distributed through the San Luis Obispo Tribune. Also, Morro Bay has it's annual "Cruisin Morro Bay" car show, this Friday 6:00 to 8:00pm, Saturday 9:00am to 4:00pm and Sunday 9:00 to 11:30am. There'll be over 6000 cars to check out. It's fun and it's free!

Slump? What Slump?

2007-05-02T11:41:00.000-07:00

Well, okay...we have been in a minor slump...if you can even call it that. But it was bound to happen eventually. It had to. Prices could not realistically keep appreciating as quickly as they did over the past few years without some kind of adjustment. But does our market truly mirror what is happening in the bigger cities like LA or the Bay area? What about the valley, like Fresno and Bakersfield since that's where many of our buyers come from? What about the rest of the country? Although we have many full-time residents in Cayucos and Morro Bay, the majority of homes in our market are vacation homes or second homes. Unfortunately, there aren't many families and young singles living full time here (at least not for very long) because of the scarcity of jobs and high cost of housing. This resort destination and retirement community is influenced by the "coastal lifestyle" and comprised of local activities, attractions and the coastal weather. For this reason, our real estate market is unique and it is doing much better than the market in other areas of the state and the country. Another factor affecting values are the thousands of Baby Boomers starting to retire and looking for the "coastal lifestyle".

So...buyers who continue to wait for beach property to "bottom out" just might be disappointed if they wait too long. In this light, today's market's lookin' pretty darn good.

Read an article from MSNBC.com regarding the record vacation home sales for 2006 at http://www.msnbc.msn.com/id/18405318/from/ET/

Extreme Home Makeover

2007-04-28T14:51:00.000-07:00

How a "Brady Bunch" House Became the Gem of the Neighborhood

Here's the story..... of a well kept home that was owned by the same person since it was built in 1968. The original owner was a 90 plus year old woman who meticulously kept it clean and maintained throughout the years, but "style-wise" the house was stuck in the "Brady Bunch" era. The interior boasted shag carpet of various shades of brown in the living room and bedrooms, autumn gold linoleum in the kitchen and baths, avocado green appliances (as clean as if they were never used) bubble glass light fixtures, pop-corn acoustic ceilings, dark wood paneling, and double-layer fabric drapes on every window. The exterior, of course, was done in gold-beige stucco with dark brown wood accents and a triple layer shake roof. The entry porch was enclosed by a wooden structure painted dark brown and covered by sheets of gold bubble plexiglass to shelter visitors from the rain. And the spacious yard was filled with nothing but juniper shrubs and ice-plant. I'm certain in it's heyday, back in 1968-1970 the home was the gem of the neighborhood, but for the 21st century it was in need of an "extreme home makeover".

Well, the 90 plus year old woman sold the Brady Bunch house to a young family who bought the home to live in and remodel little by little. Its best qualities were the location, the ocean view, and the manner in which it was lovingly cared for throughout the years. Before they moved in, they had the popcorn ceilings scraped, paneling removed, floors redone in cherry wood and travertine, new lighting and paint. They spent the next year finishing the interior with decorative touches like crown moulding, expanding the master bath, adding a closet, creating an access from the garage into the house, adding new appliances and granite counter tops in the kitchen and more. The following year, the roof and all of the windows were replaced, copper rain gutters were installed, limestone pillars and windowsills were added, the deck was re-built, the front entry was redone, the yard was redesigned and landscaped, and the neighbors cheered! In fact, they were even a little inspired. All around the neighborhood you could see all kinds of home improvement projects going on. Well, the time has come for the hard working family to set their sights on a new project so they are selling this beautiful home and hope to find a buyer who will love and enjoy it. An "extreme home makeover" helped a "Brady Bunch" house reclaim its true calling as the gem of the neighborhood.

for more information visit http://www.201adoree.com

To Have Your Cake and Eat it Too

2007-04-24T12:44:00.000-07:00

When looking to buy on the coast, the big dilemma for many buyers is deciding whether they want a home where they can be happy just looking at the water or do they really want to walk to the beach every day. Finding a home with a panoramic ocean view that is close to the beach is like having your cake and eating it too. This is sometimes tough to do in Cayucos and Morro Bay, unless you can afford to purchase an oceanfront property, because of the layout of the areas and the restrictions of the neighborhoods.

In the Beachtract neighborhood of Morro Bay, which is located West of Highway 1 down by the sandy beach, the homes are within a block of the water, but the city does not allow second stories so most of the homes do not have ocean views. It is rare to find these single level homes positioned so you can look down the street toward the water or built in a manner where the windows are angled toward the ocean. There are, however, several higher priced homes in this neighborhood, either on the ocean at over $2 million or across the street from the beach with ocean views; so you have to pay to get the cake. By the way, there's a great buy right now on a darling one bedroom in that neighborhood listed for $600,000....No view, but close to the beach.

Across Highway 1 from the Beachtract neighborhood is where you find the homes with the best views, but then you sacrifice having the close proximity, although you can still walk to the beach by crossing the highway at one of two stop lights with crosswalks. The higher up the hill you go in this North Morro Bay neighborhood, the better chance you have of getting a more spectacular, panoramic whitewater view and keeping your view from being blocked by other homes that may build up some day. The homes that are higher on the hill are often more expensive because of these views, along with the cost to build reinforced foundations. They usually have two or even three levels and stairs are often a drawback for some buyers, especially those seeking to purchase for future retirement. An elevator is usually a plus. Alternatively, if the home is built on the downslope side of the hill, the living level is at the street and the rest of the home, i.e. additional bedrooms, is downstairs. This is an optimum floor plan because you can drive into the garage, walk directly into the living level, enjoy the panoramic views without stairs and everything else goes down instead of up.

The Harbor tract is also built on a hill with views of the harbor. The Cloisters has newer homes, some are two-story with views, and it is a flat neighborhood on the West side of Hwy. 1 with dunes separating the neighborhood from the ocean. And the Heights, which is sort of a deceiving name, is the downtown area of Morro Bay near the golf course, state park and Embarcadero. Homes in the Heights are also very desirable because of the proximity to all of the activities in town, i.e. shopping, restaurants, the festivals etc. and many have views of the water and harbor. These neighborhoods, except for the Cloisters, are not very close to the sandy beach.

The layout of Cayucos is somewhat similar to Morro Bay in that the numbered streets are closest to the beach and although two story homes are allowed, there are restrictions as to height. The numbered streets area is flat and you cannot build above your neighbor and get a panoramic view of the ocean. All of the homes in the numbered streets are within a block and 1/2 to the beach and are West of Hwy 1 and some do have views of the water, but unless you are oceanfront, they are not panoramic. The best views, however are those up on the hill in Cayucos, either in town or in South Cayucos on the East side of Hwy. 1. Because Cayucos is primarily a "beach town" anywhere you are in Cayucos is a fairly easy walk to the beach.

So, when thinking about what is important, a panoramic ocean view or being really close to the sand, unless you plan to buy an oceanfront you may have to consider choosing one criteria over the other. However, if you can compromise a little bit on each, there is a way, by finding the right spot and the right house in the right neighborhood, you can have your cake and eat it too.

State of the Market

2007-04-21T11:21:00.000-07:00

Here is a brief summary of the current state of the market in Cayucos and Morro Bay. For Cayucos there are currently 52 homes for sale which is quite a bit more than usual compared to the past couple of years. The least expensive home is listed for $549,000 and the most expensive is an oceanfront listed for $4,950,000. 24 of the 52 homes are priced over $1 million and the average list price is $1,389,481. The average time it is taking for a home to sell is 147 days. There are 3 beachfront homes currently on the market. The good news for buyers is that there is plenty of inventory to choose from which is unusual for Cayucos, and with the competition among sellers, buyers can get a better price than they've been able to in the past. Even so, the values are showing that it is still a very desirable little beach town.

Regarding Morro Bay, there are currently 85 homes for sale including condos. The least expensive is a condo for $325,000 and a single-family home for $397,650. At the top of the market in Morro Bay is a home listed for $3,000,000 on 20 acres and there is one oceanfront home for sale listed for $2,650,000. The average list price is $936,970 and it is taking 142 days to sell a home in this market. Morro Bay has more homes that are affordable as far coastal property goes and we are seeing the lower end of the market sell fairly quickly. Buyers are starting to come over to the area now that tax season is over. This is the time of year that sales begin to pick up and I am very optimistic it will turn out to be a good year over all. Right now, however, we need to reduce our inventory little by little to balance out the market.

My New Blog

2007-04-19T11:09:00.001-07:00

Welcome to my new blog about real estate on the central coast of California. I have been a Real Estate Agent in Cayucos and Morro Bay for about 7 years and I am excited to share what is happening in today's market. I will be writing my thoughts, sharing ideas and experiences and posting information a few days a week and hope you will find it interesting and helpful. Please visit often and send me your questions and comments. Thanks!

Sunset over Estero Bay

2007-04-18T17:24:00.000-07:00